Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                         CHAPTER 634-H.F.No. 85 
           An act relating to consumer protection; regulating 
          sales of used motor vehicles under certain 
          circumstances; regulating new and used motor vehicle 
          dealer licenses; providing certain standards in 
          applications for certificates of title; requiring 
          certain disclosures upon the transfer of a motor 
          vehicle; providing for refund of certain taxes; 
          providing penalties; amending Minnesota Statutes 1986, 
          sections 168.27, subdivisions 1, 2, 8, 10, 11, and by 
          adding subdivisions; and 325E.0951, by adding a 
          subdivision; Minnesota Statutes 1987 Supplement, 
          section 297B.031; proposing coding for new law in 
          Minnesota Statutes, chapters 168A and 325F. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 168.27, 
subdivision 1, is amended to read:  
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the following terms have the meanings given them: 
    (1) "Leasing motor vehicles" means furnishing a motor 
vehicle for a fee under a bailor-bailee relationship where no 
incidences of ownership are intended to be transferred other 
than the right to use the vehicle for a stated period of time. 
    (2) "Brokering motor vehicles" means arranging sales 
between willing buyers and sellers of motor vehicles and 
receiving a fee for said service. 
    (3) "Wholesaling motor vehicles" means selling new or used 
motor vehicles to dealers for resale to the public. 
    (4) "Auctioning motor vehicles" means arranging for and 
handling the sale of motor vehicles, not the property of the 
auctioneer, to the highest bidder. 
    (5) "Dealer" includes new motor vehicle dealers, used motor 
vehicle dealers, brokers, wholesalers, auctioneers and lessors 
of new or used motor vehicles. 
    (6) "Commercial building" means a permanent, enclosed 
building that is on a permanent foundation and connected to 
local sewer and water facilities or otherwise complying with 
local sanitary codes, is adapted to commercial use and located 
in an area zoned for commercial or other less restrictive 
nonresidential use by the governmental unit in which it is 
located, and conforms to local government zoning requirements.  
"Commercial building" may include strip office malls or garages 
if a separate entrance and a separate address are maintained and 
the dealership is clearly identified as a separate business. 
    (7) "Commercial office space" means office space occupying 
all or part of a commercial building. 
    (8) "Horse trailer" is a trailer designed and used to carry 
horses and other livestock, which has not more than three axles 
and a maximum gross weight capacity of not more than 24,000 
pounds. 
    (9) "Isolated or occasional sales or leases" means the sale 
or lease of not more than five motor vehicles in a 12-month 
period, exclusive of pioneer or classic motor vehicles as 
defined in section 168.10, subdivisions 1a and 1b or sales by a 
licensed auctioneer selling motor vehicles at an auction if, in 
the ordinary course of the auctioneer's business, the sale of 
motor vehicles is incidental to the sale of other real or 
personal property. 
    (10) "Used motor vehicle" means a motor vehicle for which 
title has been transferred from the person who first acquired it 
from the manufacturer, distributor, or dealer.  A new motor 
vehicle will not be considered a used motor vehicle until it has 
been placed in actual operation and not held for resale by an 
owner who has been granted a certificate of title on the motor 
vehicle and has registered the motor vehicle in accordance with 
chapters 168, 168A, and 297B, or the laws of the residence of 
the owner.  
    (11) "New motor vehicle" means a motor vehicle other than 
described in paragraph (10).  
    Sec. 2.  Minnesota Statutes 1986, section 168.27, 
subdivision 2, is amended to read:  
    Subd. 2.  [NEW MOTOR VEHICLE DEALER.] (a) No person shall 
engage in the business of selling or arranging the sale of new 
motor vehicles or shall offer to sell, solicit, arrange or 
advertise the sale of new motor vehicles without first acquiring 
a new motor vehicle dealer license.  A new motor vehicle dealer 
licensee shall be entitled thereunder to sell, broker, wholesale 
or auction and to solicit and advertise the sale, broker, 
wholesale or auction of new motor vehicles covered by the 
franchise and any used motor vehicles or to lease and to solicit 
and advertise the lease of new motor vehicles and any used motor 
vehicles and such sales or leases may be either for consumer use 
at retail or for resale to a dealer.  Nothing herein shall be 
construed to require an applicant for a dealer license who 
proposes to deal in:  (1) new and unused motor vehicle bodies; 
or (2) type A, B, or C motor homes as defined in section 
168.011, subdivision 25, to have a bona fide contract or 
franchise in effect with either the first-stage manufacturer of 
the motor home or the manufacturer or distributor of any motor 
vehicle chassis upon which the new and unused motor vehicle body 
is mounted.  The modification or conversion of a new van-type 
vehicle into a multipurpose passenger vehicle which is not a 
motor home does not constitute dealing in new or unused motor 
vehicle bodies, and a person engaged in the business of selling 
these van-type vehicles must have a bona fide contract or 
franchise with the appropriate manufacturer under subdivision 
10.  A van converter or modifier who owns these modified or 
converted van-type vehicles may sell them at wholesale to new 
motor vehicle dealers having a bona fide contract or franchise 
with the first-stage manufacturer of the vehicles. 
    (b) The requirements pertaining to franchises do not apply 
to persons who remodel or convert motor vehicles for medical 
purposes.  For purposes of this subdivision, "medical purpose" 
means certification by a licensed physician that remodeling or 
conversion of a motor vehicle is necessary to enable a 
handicapped person to use the vehicle. 
    Sec. 3.  Minnesota Statutes 1986, section 168.27, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [CONSIGNMENT SALES.] No person may solicit, 
accept, offer for sale, or sell motor vehicles for consignment 
sale unless licensed as a new or used motor vehicle dealer, a 
motor vehicle wholesaler, or a motor vehicle auctioneer.  This 
requirement does not apply to a licensed auctioneer selling 
motor vehicles at an auction if, in the ordinary course of the 
auctioneer's business, the sale of motor vehicles is incidental 
to the sale of other real or personal property.  
    Sec. 4.  Minnesota Statutes 1986, section 168.27, 
subdivision 8, is amended to read:  
    Subd. 8.  [EXEMPTIONS.] (1) Salespeople and other employees 
of licensed dealers under this section shall not be required to 
obtain individual licenses. 
    (2) Isolated or occasional sales or leases of new or used 
motor vehicles shall be exempt from the provisions of this 
section.  A person who makes only isolated or occasional sales 
or leases is not considered to be in the business of selling or 
leasing motor vehicles and does not qualify to receive dealer 
plates pursuant to subdivision 16. 
    Sec. 5.  Minnesota Statutes 1986, section 168.27, 
subdivision 10, is amended to read:  
    Subd. 10.  [ESTABLISHED PLACE OF DOING BUSINESS.] All 
licensees under this section shall have an established place of 
business which shall include as a minimum,: 
    (1) For a new motor vehicle dealer, the following: 
    (a) a permanent enclosed commercial building on a permanent 
foundation, owned or under lease by the licensee.  The lease 
shall be for a minimum term of one year.  The building shall 
contain office space where the books, records and files 
necessary to conduct the business are kept and maintained with 
personnel available during normal business hours.  Dealership 
business hours must be conspicuously posted on the place of 
doing business and readily viewable by the public; 
    (b) a bona fide contract or franchise (1) in effect with a 
manufacturer or distributor of the new motor vehicles the dealer 
proposes to sell, broker, wholesale or auction, or (2) in effect 
with the first-stage manufacturer or distributor of new motor 
vehicles purchased from a van converter or modifier which the 
dealer proposes to sell, broker, wholesale, or auction, or (3) 
in effect with the final stage manufacturer of the new type A, B 
or C motor homes which the dealer proposes to sell, broker, 
wholesale, or auction; 
    (c) a facility for the repair and servicing of motor 
vehicles and the storage of parts and accessories, not to exceed 
ten miles distance from the principal place of business.  Such 
service may be provided through contract with bona fide 
operators actually engaged in such services; 
    (d) an area either indoors or outdoors to display motor 
vehicles which is owned or under lease by the licensee; and 
    (e) a sign clearly identifying the dealership by name which 
is readily viewable by the public. 
    (2) For a used motor vehicle dealer, the following: 
    (a) a permanent enclosed commercial building on a permanent 
foundation, owned or under lease by the licensee.  The lease 
shall be for a minimum term of one year.  The building shall 
contain office space for where the books, records and files 
necessary to conduct the business are kept and maintained with 
personnel available during normal business hours or automatic 
telephone answering service during normal working business hours.
Dealership business hours must be conspicuously posted on the 
place of doing business and readily viewable by the public; 
    (b) an area either indoors or outdoors to display motor 
vehicles which is owned or under lease by the licensee; and 
    (c) a sign clearly identifying the dealership by name which 
is readily viewable by the public. 
    (3) For a motor vehicle lessor, the following:  a 
commercial office space where the books, records and files 
necessary to conduct the business are kept and maintained with 
personnel available during normal business hours or an automatic 
telephone answering service during normal business 
hours.  Business hours must be conspicuously posted on the place 
of doing business and readily viewable by the public.  The 
office space must be owned or under lease for a minimum term of 
one year by the licensee. 
    (4) For a motor vehicle broker, the following:  a 
commercial office space where the books, records and files 
necessary to conduct the business are kept and maintained with 
personnel available during normal business hours or an automatic 
telephone answering service during normal business hours. 
    (5) For a motor vehicle wholesaler, the following:  a 
commercial office space where the books, records and files 
necessary to conduct the business are kept and maintained with 
personnel available during normal business hours or an automatic 
telephone answering service during normal business hours.  The 
office space must be owned or under lease for a minimum term of 
one year by the licensee. 
    (6) (5) For a motor vehicle auctioneer, the following:  a 
permanent enclosed commercial building, within or without the 
state, on a permanent foundation, owned or under lease by the 
licensee.  The lease shall be for a minimum term of one year.  
The building shall contain office space where the books, records 
and files necessary to conduct the business are kept and 
maintained with personnel available during normal business hours 
or an automatic telephone answering service during normal 
business hours.  
    (7) (6) If a new or used motor vehicle dealer maintains 
more than one place of doing business in a county, the separate 
places shall be listed on the application.  If additional places 
of business are maintained outside of one county, separate 
licenses shall be obtained for each county. 
    (8) (7) If a motor vehicle lessor, broker wholesaler, or 
auctioneer maintains more than one permanent place of doing 
business, either in one or more counties, the separate places 
shall be listed in the application, but only one license shall 
be required.  If a lessor proposes to sell previously leased or 
rented vehicles at a location outside the seven-county 
metropolitan area, as defined in section 473.121, subdivision 2, 
other than cities of the first or second class, the lessor must 
obtain a license for each nonmetropolitan area county in which 
sales are to take place. 
    (8) If a motor vehicle dealer, lessor, or wholesaler does 
not have direct access to a public road or street, any privately 
owned roadway providing access to a public road or street must 
be clearly identified and adequately maintained. 
    Sec. 6.  Minnesota Statutes 1986, section 168.27, 
subdivision 11, is amended to read:  
    Subd. 11.  [LICENSES.] Application for license or 
notification of a change of location of a license must include a 
street address, not a post office box, and is subject to the 
registrar's approval.  Upon the filing of an application for a 
license and the proper fee, the registrar is authorized, unless 
the application on its face appears to be invalid, to grant a 
90-day temporary license and during said 90-day period shall 
investigate the fitness of the applicant, inspect the site and 
make such other investigation as is necessary to insure 
compliance with the licensing law.  The registrar may extend the 
temporary license 30 days.  At the end of the period of 
investigation the license shall either be granted or denied.  
The license must be denied if within the previous five years the 
applicant was enjoined due to a violation of section 325F.69 or 
convicted of violating section 325E.14, 325E.15, 325E.16, or 
325F.69, or convicted under section 609.53 of receiving or 
selling stolen vehicles, or convicted of violating United States 
Code, title 15, sections 1981 to 1991, as amended through 
December 31, 1984.  If the application is approved, the 
registrar shall license the applicant as a motor vehicle dealer 
for the remainder of the calendar year, and issue a certificate 
of license therefor as the registrar may provide upon which 
shall be placed a distinguishing number of identification of 
such dealer.  Each initial application for a license shall be 
accompanied by a fee of $50 in addition to the annual fee.  The 
annual fee shall be $100.  All initial fees and annual fees 
shall be paid into the state treasury and credited to the 
general fund.  If the initial application is received by the 
registrar after July 1 of any year, the first annual fee shall 
be reduced by one-half. 
    Sec. 7.  Minnesota Statutes 1986, section 168.27, is 
amended by adding a subdivision to read: 
    Subd. 12a.  [GROUNDS FOR CANCELLATION WITHOUT HEARING.] A 
license may be canceled by the registrar upon satisfactory proof 
that the dealer has failed to provide or maintain the required 
surety bond, or that the dealer has failed to provide or 
maintain the insurance required under chapter 65B.  Surety 
companies and insurers providing required coverages shall 
promptly notify the registrar upon canceling any surety bond or 
required insurance.  The registrar shall notify the dealer of 
the reason or reasons for cancellation before the cancellation 
occurs. 
    Sec. 8.  Minnesota Statutes 1986, section 168.27, is 
amended by adding a subdivision to read:  
    Subd. 26.  [ADVERTISING DISCLOSURE.] All advertising by a 
motor vehicle dealer must disclose that the vehicle is being 
offered for sale by a dealer through use of the dealership name, 
the term "dealer", or the abbreviation "DLR." 
    Sec. 9.  [168A.085] [APPLICATIONS FOR TITLE, CERTAIN 
CASES.] 
    Subdivision 1.  [LIMITATIONS.] No application for 
certificate of title or registration may be issued for a vehicle 
that was not manufactured in compliance with applicable federal 
emission standards in force at the time of manufacture as 
provided by the Clean Air Act, United States Code, title 42, 
sections 7401 through 7642, and regulations adopted pursuant 
thereto, and safety standards as provided by the National 
Traffic and Motor Safety Act, United States Code, title 15, 
sections 1381 through 1431, and regulations adopted pursuant 
thereto, unless the applicant furnishes either proof 
satisfactory to the agent that the vehicle was not brought into 
the United States from outside the country or all of the 
following: 
    (1) a bond release letter, with all attachments, issued by 
the United States Department of Transportation acknowledging 
receipt of a statement of compliance submitted by the importer 
of the vehicle and that the statement meets the safety 
requirements as provided by Code of Federal Regulations, title 
19, section 12.80(e); 
    (2) a bond release letter, with all attachments, issued by 
the United States Environmental Protection Agency stating that 
the vehicle has been tested and known to be in conformity with 
federal emission requirements; and 
    (3) a receipt or certificate issued by the United States 
Department of the Treasury showing that any gas-guzzler taxes 
due on the vehicle as provided by Public Law Number 95-618, 
title 2, section 201(a), have been fully paid. 
    Subd. 2.  [ACCOMPANYING DOCUMENTS.] The application for 
certificate of title and the application for registration must 
be accompanied by a manufacturer's certificate of origin in the 
English language which was issued by the actual vehicle 
manufacturer and either: 
    (1) the original documents constituting valid proof of 
ownership in the country in which the vehicle was originally 
purchased, together with a translation of the documents into the 
English language verified as to accuracy of the translation by 
affidavit of the translator; or 
    (2) with regard to a vehicle imported from a country that 
cancels the vehicle registration and title for export, a bond as 
required by section 168A.07, subdivision 1, clause (2). 
    Sec. 10.  Minnesota Statutes 1987 Supplement, section 
297B.031, is amended to read:  
    297B.031 [REFUND OF TAX; MANDATORY REFUND OR REPLACEMENT 
LAWS.] 
    If a manufacturer of motor vehicles is required by a court 
order under section 325F.665 or a decision of an informal 
dispute settlement mechanism as defined in section 325F.665, or 
a dealer or lessor of motor vehicles is required by section 12, 
to pay the consumer the tax imposed by this chapter, a portion 
of the tax so paid shall must be refunded to the manufacturer, 
dealer, or lessor.  The amount of the refund shall be is the tax 
paid by the purchaser less an amount equal to the tax paid 
multiplied by a fraction, the denominator of which is the 
purchase price of the vehicle and the numerator of which is the 
allowance deducted from the refund for the consumer's use of the 
vehicle.  The refund shall must be paid to the manufacturer, 
dealer, or lessor only upon filing of a written application, in 
a form and providing information as prescribed by the 
commissioner.  Payment of a refund pursuant to this 
section shall must be made out of the general and highway user 
funds in the same proportion provided for deposit of tax 
proceeds for the fiscal year pursuant to section 297B.09, 
subdivision 1.  The amounts necessary to pay the refunds are 
appropriated out of the respective funds. 
    Sec. 11.  Minnesota Statutes 1986, section 325E.0951, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [DISCLOSURE.] No person may transfer a motor 
vehicle without certifying in writing to the transferee that to 
the best of the person's knowledge, the pollution control 
system, including the restricted gasoline pipe, has not been 
removed, altered, or rendered inoperative.  The registrar of 
motor vehicles shall prescribe the manner and form in which this 
written disclosure must be made.  No transferor may knowingly 
give a false statement to a transferee in making a disclosure 
required by this subdivision. 
    Sec. 12.  [325F.662] [SALE OF USED MOTOR VEHICLES.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the following terms have the meanings given to them. 
    (a) "Consumer" means the purchaser, other than for purposes 
of resale, of a used motor vehicle used primarily for personal, 
family, or household purposes. 
    (b) "Dealer" means a motor vehicle dealer or lessor, as 
defined in section 168.27, subdivisions 2, 3, and 4, whether 
licensed or unlicensed, or the dealer's or lessor's agent, who 
is engaged in the business of selling or arranging the sale of 
used motor vehicles in this state; except that, the term does 
not include a bank or financial institution, a business selling 
a used motor vehicle to an employee of that business, a lessor 
selling a leased used motor vehicle to that vehicle's lessee or 
a family member or employee of the lessee, or a licensed 
auctioneer selling motor vehicles at an auction if, in the 
ordinary course of the auctioneer's business, the sale of motor 
vehicles is incidental to the sale of other real or personal 
property.  
    (c) "Motor vehicle" means a passenger automobile, as 
defined in section 168.011, subdivision 7, including pickup 
trucks and vans. 
    (d) "Used motor vehicle" means any motor vehicle which has 
been driven more than the limited use necessary in moving or 
road testing a new motor vehicle prior to delivery to a consumer.
    (e) "Express warranty" means a dealer's written statement, 
as defined in section 325G.17, subdivision 5, provided to a 
consumer in connection with the sale of a used motor vehicle. 
    (f) "Buyer's Guide" means the window form required by the 
Federal Trade Commission's "Used Motor Vehicle Trade Regulation 
Rule," Code of Federal Regulations, title 16, section 455.2. 
    Subd. 2.  [WRITTEN WARRANTY REQUIRED.] (a) Every used motor 
vehicle sold by a dealer is covered by an express warranty which 
the dealer shall provide to the consumer.  At a minimum, the 
express warranty applies for the following terms: 
    (1) if the used motor vehicle has less than 36,000 miles, 
the warranty must remain in effect for at least 60 days or 2,500 
miles, whichever comes first; 
    (2) if the used motor vehicle has 36,000 miles or more, but 
less than 75,000 miles, the warranty must remain in effect for 
at least 30 days or 1,000 miles, whichever comes first. 
    (b) The express warranty must require the dealer, in the 
event of a malfunction, defect, or failure in a covered part, to 
repair or replace the covered part, or at the dealer's election, 
to accept return of the used motor vehicle from the consumer and 
provide a refund to the consumer. 
    (c) For used motor vehicles with less than 36,000 miles, 
the dealer's express warranty shall cover, at minimum, the 
following parts:  
    (1) with respect to the engine, all lubricated parts, 
intake manifolds, engine block, cylinder head, rotary engine 
housings, and ring gear; 
    (2) with respect to the transmission, the automatic 
transmission case, internal parts, and the torque converter; or, 
the manual transmission case, and the internal parts; 
    (3) with respect to the drive axle, the axle housings and 
internal parts, axle shafts, drive shafts and output shafts, and 
universal joints; but excluding the secondary drive axle on 
vehicles, other than passenger vans, mounted on a truck chassis; 
    (4) with respect to the brakes, the master cylinder, vacuum 
assist booster, wheel cylinders, hydraulic lines and fittings, 
and disc brakes calipers; 
    (5) with respect to the steering, the steering gear housing 
and all internal parts, power steering pump, valve body, piston, 
and rack;  
    (6) the water pump;  
    (7) the externally-mounted mechanical fuel pump; 
    (8) the radiator; 
    (9) the alternator, generator, and starter. 
    (d) For used motor vehicles with 36,000 miles or more, but 
less than 75,000 miles, the dealer's express warranty shall 
cover, at minimum, the following parts: 
    (1) with respect to the engine, all lubricated parts, 
intake manifolds, engine block, cylinder head, rotary engine 
housings, and ring gear;  
    (2) with respect to the transmission, the automatic 
transmission case, internal parts, and the torque converter; or, 
the manual transmission case, and internal parts; 
    (3) with respect to the drive axle, the axle housings and 
internal parts, axle shafts, drive shafts and output shafts, and 
universal joints; but excluding the secondary drive axle on 
vehicles, other than passenger vans, mounted on a truck chassis; 
    (4) with respect to the brakes, the master cylinder, vacuum 
assist booster, wheel cylinders, hydraulic lines and fittings, 
and disc brake calipers; 
    (5) with respect to the steering, the steering gear housing 
and all internal parts, power steering pump, valve body, and 
piston; 
    (6) the water pump; 
    (7) the externally-mounted mechanical fuel pump. 
    (e)(1) A dealer's obligations under the express warranty 
remain in effect notwithstanding the fact that the warranty 
period has expired, if the consumer promptly notified the dealer 
of the malfunction, defect, or failure in the covered part 
within the specified warranty period and, within a reasonable 
time after notification, brings the vehicle or arranges with the 
dealer to have the vehicle brought to the dealer for inspection 
and repair.  
    (2) If a dealer does not have a repair facility, the dealer 
shall designate where the vehicle must be taken for inspection 
and repair. 
    (3) In the event the malfunction, defect, or failure in the 
covered part occurs at a location which makes it impossible or 
unreasonable to return the vehicle to the selling dealer, the 
consumer may have the repairs completed elsewhere with the 
consent of the selling dealer, which consent may not be 
unreasonably withheld. 
    (4) Notwithstanding the provisions of this paragraph, a 
consumer may have non-warranty maintenance and non-warranty 
repairs performed other than by the selling dealer and without 
the selling dealer's consent. 
    (f) Nothing in this section diminishes the obligations of a 
manufacturer under an express warranty issued by the 
manufacturer.  The express warranties created by this section do 
not require a dealer to repair or replace a covered part if the 
repair or replacement is covered by a manufacturer's new car 
warranty, or the manufacturer otherwise agrees to repair or 
replace the part. 
    (g) The express warranties created by this section do not 
cover defects or repair problems which result from collision, 
abuse, negligence, or lack of adequate maintenance following 
sale to the consumer. 
    (h) The terms of the express warranty, including the 
duration of the warranty and the parts covered, must be fully, 
accurately, and conspicuously disclosed by the dealer on the 
front of the Buyers Guide. 
    Subd. 3.  [EXCLUSIONS.] Notwithstanding the provisions of 
subdivision 2, a dealer is not required to provide an express 
warranty for the following used motor vehicles: 
    (1) vehicles sold for a total cash sale price of less than 
$3,000, including the trade-in value of any vehicle traded in by 
the consumer, but excluding tax, license fees, registration 
fees, and finance charges; 
    (2) vehicles with engines designed to use diesel fuel; 
    (3) vehicles with gross weight, as defined in section 
168.011, subdivision 16, in excess of 9,000 pounds; 
    (4) vehicles that have been custom-built or modified for 
show or for racing; 
    (5) vehicles that are eight years of age or older, as 
calculated from the first day in January of the designated model 
year of the vehicle;  
    (6) vehicles that have been produced by a manufacturer 
which has never manufactured more than 10,000 motor vehicles in 
any one year; 
    (7) vehicles having 75,000 miles or more at time of sale; 
    (8) vehicles that are not manufactured in compliance with 
applicable federal emission standards in force at the time of 
manufacture as provided by the Clean Air Act, United States 
Code, title 42, sections 7401 through 7642, and regulations 
adopted pursuant thereto, and safety standards as provided by 
the National Traffic and Motor Safety Act, United States Code, 
title 15, sections 1381 through 1431, and regulations adopted 
pursuant thereto.  
    Subd. 4.  [WAIVER.] When purchasing a used motor vehicle, a 
consumer may waive the express warranty for a covered part if: 
    (1) the dealer discloses in a clear and conspicuous typed 
or printed statement on the front of the Buyers Guide that the 
waived part contains a malfunction, defect, or repair problem; 
and 
    (2) the consumer circles this typed or printed statement 
and signs the Buyers Guide next to the circled statement. 
    Subd. 5.  [WARRANTY AUTOMATIC.] If a dealer fails to give 
the express warranty required by this section, the dealer 
nevertheless is considered to have given the express warranty as 
a matter of law. 
    Subd. 6.  ["BUYERS GUIDE" REQUIREMENTS.] In selling or 
offering to sell any used motor vehicle, and in providing the 
express warranty required by this section, a dealer shall comply 
in all respects with the Federal Trade Commission's "Used Motor 
Vehicle Trade Regulation Rule," Code of Federal Regulations, 
title 16, part 455. 
    Subd. 7.  [HONORING OF EXPRESS WARRANTIES.] (a) In 
accordance with section 325G.19, subdivision 2, every express 
warranty in connection with the sale of a used motor vehicle 
must be honored by the dealer according to the terms of the 
express warranty. 
    (b) Following repair or replacement of a covered part, the 
dealer remains responsible under the express warranty for that 
covered part for one additional warranty period. 
    (c) By honoring the terms of the express warranty by 
repairing or replacing a covered part, the dealer does not 
create an additional implied warranty on any portion of the used 
motor vehicle. 
    (d) A dealer may limit the duration of implied warranties 
to the duration of the express warranty. 
    Subd. 8.  [REFUNDS.] (a) A refund, as provided under 
subdivision 2, must consist of the full purchase price of the 
used motor vehicle and all other charges, including but not 
limited to excise tax, registration tax, license fees, and 
reimbursement for towing expenses incurred by the consumer as a 
result of the vehicle being out of service for warranty repair, 
less a reasonable allowance for the consumer's use of the 
vehicle not exceeding ten cents per mile driven or ten percent 
of the purchase price, whichever is less.  Refunds must include 
the amount stated by the dealer as the trade-in value of any 
vehicle traded in and applied to the purchase price of the used 
motor vehicle.  Refunds must be made to the consumer and 
lienholder, if any, as their interests appear on the records of 
the registrar of motor vehicles. 
    (b) The amount of the excise tax to be paid by the dealer 
to the consumer under paragraph (a) is the tax paid by the 
consumer when the vehicle was purchased less an amount equal to 
the tax paid multiplied by a fraction, the denominator of which 
is the purchase price of the vehicle and the numerator of which 
is the allowance deducted from the refund for the consumer's use 
of the vehicle.  
    Subd. 9.  [CIVIL REMEDIES.] Any dealer who is found to have 
violated this section is subject to the penalties and remedies, 
including a private right of action, as provided in section 
8.31.  In addition, a violation of subdivision 7 is also a 
violation of section 325F.69.  
    Subd. 10.  [LIMITATION ON ACTIONS.] A private civil action 
brought by a consumer under this section must be commenced 
within one year of the expiration of the express warranty. 
    Subd. 11.  [REMEDY NONEXCLUSIVE.] Nothing in this section 
limits the rights or remedies which are otherwise available to a 
consumer under any other law. 
    Approved April 26, 1988